Minimum Wage Increase Reminder

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As a reminder to California employers, the next phase of the minimum wage increase, for many local jurisdictions, took effect on July 1, 2018. If your business or employees are located in certain local jurisdictions you must comply with the minimum wage for your city or county.

Local Minimum Wage Ordinances 

Many cities and counties have their own minimum wage ordinances providing for a local minimum wage rate that exceeds the state rate, which increased January 1, 2018. In those jurisdictions where the local minimum wage is greater than the State’s minimum wage ($10.50/hour for employers with 25 or fewer employees, and $11.00/hour for employers with more than 25 employees), employers are required to comply with their local city or county wage rate and pay the higher minimum wage rate for employees working within those specific locales. The locales that increased their minimum wage on July 1, 2018 include: Belmont, El Cerrito, Emeryville, Long Beach, the City of Los Angeles, the unincorporated areas of Los Angeles County, Malibu, Milpitas, Pasadena, Richmond, San Francisco, San Leandro, and Santa Monica. In addition, numerous other California cities already have heightened minimum wage rates in place.The attached Minimum Wage Increase Summary Chart summarizes the recent minimum wage increases (Click here for Wage Chart).

Local Minimum Wage Increase Does Not Impact Exempt Status Employees

To be classified as an exempt employee, the worker must meet the: (a) salary test and (b) the duties test. For an employee to meet the “salary test” for the exemption from overtime the employee must earn a minimum monthly salary of no less than two times the state’s minimum wage for full-time employment. The local minimum wage increase does not impact the salary test for exempt classification.

Poster Requirements

The City and County of Los Angeles have published their Minimum Wage Posters which must be displayed in the workplace. (Click for those posters – L.A. County; L.A. City). Employers should check with their cities and counties for the current minimum wage poster to be displayed.

This Newsletter is intended as a brief summary of employment law. While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship. If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved. ©2018.